Editing Financial market (section)

==Types of financial markets==
Within the financial sector, the term "financial markets" is often used to refer just to the markets that are used to raise finances. For long term finance, they are usually called the [[capital markets]]; for short term finance, they are usually called [[money markets]]. The money market deals in short-term loans, generally for a period of a year or less. Another common use of the term is as a catchall for all the markets in the financial sector, as per examples in the breakdown below.

* [[Capital market]]s, which consist of:
**[[Stock market]]s, which provide financing through the issuance of shares or [[stock|common stock]], and enable the subsequent trading thereof.
**[[Bond market]]s, which provide financing through the issuance of [[Bond (finance)|bond]]s, and enable the subsequent trading thereof.
* [[Commodity market]]s, which facilitate trading in the primary economic sector rather than manufactured products. [[Soft commodities]] is a term generally referring to commodities that are grown rather than mined, such as crops (corn, wheat, soybean, fruit and vegetable), livestock, cocoa, coffee and sugar. Hard commodities is a term generally referring to commodities that are mined such as gold, gemstones and other metals and generally drilled such as oil and gas.
* [[Money market]]s, which provide short term debt financing and investment.
* [[Derivatives market]]s, which provide instruments for the management of [[Finance|financial]] risk.<ref>{{Cite web|url=http://chicagofed.org/webpages/publications/understanding_derivatives/index.cfm|title=Understanding Derivatives: Markets and Infrastructure - Federal Reserve Bank of Chicago|website=chicagofed.org|language=en|access-date=2017-12-12}}</ref>
* [[Futures exchange|Futures market]]s, which provide standardized [[forward contract]]s for trading products at some future date; see also [[forward market]].
* [[Foreign exchange market]]s, which facilitate the trading of [[Foreign exchange market|foreign exchange]].
* [[Cryptocurrency]] markets, which facilitate the trading of digital assets and financial technologies. 
* [[Spot market]]
* [[Interbank lending market]]
The [[capital market]]s may also be divided into [[primary market]]s and [[secondary market]]s. Newly formed (issued) securities are bought or sold in primary markets, such as during [[initial public offering]]s. Secondary markets allow investors to buy and sell existing securities. The transactions in primary markets exist between issuers and investors, while secondary market transactions exist among investors.

[[Market liquidity|Liquidity]] is a crucial aspect of securities that are traded in secondary markets. Liquidity refers to the ease with which a security can be sold without a loss of value. Securities with an active secondary market mean that there are many buyers and sellers at a given point in time. Investors benefit from liquid securities because they can sell their assets whenever they want; an illiquid security may force the seller to get rid of their asset at a large discount.